This was offset in part by a 11.2% increase in rental income from investment properties, mainly from KSH’s investment property in Tianjin, China.
KSH says that in view of the promising outlook of the construction sector and amid continual tightening of manpower supply, the group will continue to strive to raise its productivity through technology adoption and innovative measures, training of workers, and higher usage of equipment and tools with the assistance of government grants.
It also intends to continue streaming the operation processes to reduce expenses.
Separately, the group has announced that its wholly-owned subsidiary, Kim Seng Heng Engineering Construction (KSHEC), has received a letter of intent (LoI) from KSH’s 35%-owned associated company, Rio Casa Venture, for a construction contract worth $266.3 million.
Under the contract, KSHEC will construct a proposed condominium housing development comprising of 9 blocks of 17/18 storey apartments and 22 units of strata landed houses with shops, two basement carparks, landscape deck and community facilities.
The contract also includes the construction of a showflat and sales gallery, which is expected to commence by end-Dec for a period of 3.5 months.
Meanwhile, construction works of the main development is expected to commence by Nov 2018 and will last for a period of 50 months.
Including the contract to be awarded from the LoI, the group’s construction order book as at end-Nov is approximately $600 million, says KSH.
Shares in KSH closed 1 cent higher at 86 cents on Thursday.
